130th Ohio General Assembly
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H. B. No. 474  As Introduced
As Introduced

129th General Assembly
Regular Session
2011-2012
H. B. No. 474


Representative Goyal 

Cosponsors: Representatives Hagan, R., Foley, Driehaus, Boyd, O'Brien, Murray, Gerberry, Antonio, Fedor, Heard 



A BILL
To amend sections 1509.02, 1509.06, 1509.22, 1509.221, and 1509.31 and to enact sections 1509.074, 1509.227, and 1590.228 of the Revised Code to require a background check of an applicant for an injection well, to establish recycling and treatment requirements for wastewater from oil and gas drilling and production operations, to revise the procedures and requirements governing the application for and issuance of a permit for a well to inject such wastewater, to establish an additional fee on that injection, and to establish requirements governing ground water monitoring related to that injection.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 1509.02, 1509.06, 1509.22, 1509.221, and 1509.31 be amended and sections 1509.074, 1509.227, and 1509.228 of the Revised Code be enacted to read as follows:
Sec. 1509.02.  There is hereby created in the department of natural resources the division of oil and gas resources management, which shall be administered by the chief of the division of oil and gas resources management. The division has sole and exclusive authority to regulate the permitting, location, and spacing of oil and gas wells and production operations within the state, excepting only those activities regulated under federal laws for which oversight has been delegated to the environmental protection agency, the permitting of a well to inject brine or other waste substances under division (D) of section 1509.22 of the Revised Code, and activities regulated under sections 6111.02 to 6111.029 of the Revised Code. The regulation of oil and gas activities is a matter of general statewide interest that requires uniform statewide regulation, and this chapter and rules adopted under it constitute a comprehensive plan with respect to all aspects of the locating, drilling, well stimulation, completing, and operating of oil and gas wells within this state, including site construction and restoration, permitting related to those activities, and the disposal of wastes from those wells. Nothing in this section affects the authority granted to the director of transportation and local authorities in section 723.01 or 4513.34 of the Revised Code, provided that the authority granted under those sections shall not be exercised in a manner that discriminates against, unfairly impedes, or obstructs oil and gas activities and operations regulated under this chapter.
The chief shall not hold any other public office, nor shall the chief be engaged in any occupation or business that might interfere with or be inconsistent with the duties as chief.
All moneys collected by the chief pursuant to sections 1509.06, 1509.061, 1509.062, 1509.071, 1509.13, 1509.22, 1509.221, 1509.222, 1509.34, and 1509.50 and division (B)(1) of section 1509.221 of the Revised Code, ninety per cent of moneys received by the treasurer of state from the tax levied in divisions (A)(5) and (6) of section 5749.02 of the Revised Code, all civil penalties paid under section 1509.33 of the Revised Code, and, notwithstanding any section of the Revised Code relating to the distribution or crediting of fines for violations of the Revised Code, all fines imposed under divisions (A) and (B) of section 1509.99 of the Revised Code and fines imposed under divisions (C) and (D) of section 1509.99 of the Revised Code for all violations prosecuted by the attorney general and for violations prosecuted by prosecuting attorneys that do not involve the transportation of brine by vehicle shall be deposited into the state treasury to the credit of the oil and gas well fund, which is hereby created. Fines imposed under divisions (C) and (D) of section 1509.99 of the Revised Code for violations prosecuted by prosecuting attorneys that involve the transportation of brine by vehicle and penalties associated with a compliance agreement entered into pursuant to this chapter shall be paid to the county treasury of the county where the violation occurred.
The fund shall be used solely and exclusively for the purposes enumerated in division (B) of section 1509.071 of the Revised Code, for the expenses of the division associated with the administration of this chapter and Chapter 1571. of the Revised Code and rules adopted under them, and for expenses that are critical and necessary for the protection of human health and safety and the environment related to oil and gas production in this state. The expenses of the division in excess of the moneys available in the fund shall be paid from general revenue fund appropriations to the department.
Sec. 1509.06. (A) An application for a permit to drill a new well, drill an existing well deeper, reopen a well, convert a well to any use other than its original purpose, or plug back a well to a different source of supply, including associated production operations, shall be filed with the chief of the division of oil and gas resources management upon such form as the chief prescribes and shall contain each of the following that is applicable:
(1) The name and address of the owner and, if a corporation, the name and address of the statutory agent;
(2) The signature of the owner or the owner's authorized agent. When an authorized agent signs an application, it shall be accompanied by a certified copy of the appointment as such agent.
(3) The names and addresses of all persons holding the royalty interest in the tract upon which the well is located or is to be drilled or within a proposed drilling unit;
(4) The location of the tract or drilling unit on which the well is located or is to be drilled identified by section or lot number, city, village, township, and county;
(5) Designation of the well by name and number;
(6) The geological formation to be tested or used and the proposed total depth of the well;
(7) The type of drilling equipment to be used;
(8) If the well is for the injection of a liquid, identity of the geological formation to be used as the injection zone and the composition of the liquid to be injected;
(9) For an application for a permit to drill a new well within an urbanized area, a sworn statement that the applicant has provided notice by regular mail of the application to the owner of each parcel of real property that is located within five hundred feet of the surface location of the well and to the executive authority of the municipal corporation or the board of township trustees of the township, as applicable, in which the well is to be located. In addition, the notice shall contain a statement that informs an owner of real property who is required to receive the notice under division (A)(9) of this section that within five days of receipt of the notice, the owner is required to provide notice under section 1509.60 of the Revised Code to each residence in an occupied dwelling that is located on the owner's parcel of real property. The notice shall contain a statement that an application has been filed with the division of oil and gas resources management, identify the name of the applicant and the proposed well location, include the name and address of the division, and contain a statement that comments regarding the application may be sent to the division. The notice may be provided by hand delivery or regular mail. The identity of the owners of parcels of real property shall be determined using the tax records of the municipal corporation or county in which a parcel of real property is located as of the date of the notice.
(10) A plan for restoration of the land surface disturbed by drilling operations. The plan shall provide for compliance with the restoration requirements of division (A) of section 1509.072 of the Revised Code and any rules adopted by the chief pertaining to that restoration.
(11) A description by name or number of the county, township, and municipal corporation roads, streets, and highways that the applicant anticipates will be used for access to and egress from the well site;
(12) On and after the effective date of the rules adopted under section 1509.074 of the Revised Code, a plan that complies with that section and those rules for the recycling and treatment of wastewater, including brine and other waste substances, that results from, is obtained from, or is produced in connection with oil or gas drilling, exploration, or production;
(13) Such other relevant information as the chief prescribes by rule.
Each application shall be accompanied by a map, on a scale not smaller than four hundred feet to the inch, prepared by an Ohio registered surveyor, showing the location of the well and containing such other data as may be prescribed by the chief. If the well is or is to be located within the excavations and workings of a mine, the map also shall include the location of the mine, the name of the mine, and the name of the person operating the mine.
(B) The chief shall cause a copy of the weekly circular prepared by the division to be provided to the county engineer of each county that contains active or proposed drilling activity. The weekly circular shall contain, in the manner prescribed by the chief, the names of all applicants for permits, the location of each well or proposed well, the information required by division (A)(11) of this section, and any additional information the chief prescribes. In addition, the chief promptly shall transfer an electronic copy or facsimile, or if those methods are not available to a municipal corporation or township, a copy via regular mail, of a drilling permit application to the clerk of the legislative authority of the municipal corporation or to the clerk of the township in which the well or proposed well is or is to be located if the legislative authority of the municipal corporation or the board of township trustees has asked to receive copies of such applications and the appropriate clerk has provided the chief an accurate, current electronic mailing address or facsimile number, as applicable.
(C)(1) Except as provided in division (C)(2) of this section, the chief shall not issue a permit for at least ten days after the date of filing of the application for the permit unless, upon reasonable cause shown, the chief waives that period or a request for expedited review is filed under this section. However, the chief shall issue a permit within twenty-one days of the filing of the application unless the chief denies the application by order.
(2) If the location of a well or proposed well will be or is within an urbanized area, the chief shall not issue a permit for at least eighteen days after the date of filing of the application for the permit unless, upon reasonable cause shown, the chief waives that period or the chief at the chief's discretion grants a request for an expedited review. However, the chief shall issue a permit for a well or proposed well within an urbanized area within thirty days of the filing of the application unless the chief denies the application by order.
(D) An applicant may file a request with the chief for expedited review of a permit application if the well is not or is not to be located in a gas storage reservoir or reservoir protective area, as "reservoir protective area" is defined in section 1571.01 of the Revised Code. If the well is or is to be located in a coal bearing township, the application shall be accompanied by the affidavit of the landowner prescribed in section 1509.08 of the Revised Code.
In addition to a complete application for a permit that meets the requirements of this section and the permit fee prescribed by this section, a request for expedited review shall be accompanied by a separate nonrefundable filing fee of two hundred fifty dollars. Upon the filing of a request for expedited review, the chief shall cause the county engineer of the county in which the well is or is to be located to be notified of the filing of the permit application and the request for expedited review by telephone or other means that in the judgment of the chief will provide timely notice of the application and request. The chief shall issue a permit within seven days of the filing of the request unless the chief denies the application by order. Notwithstanding the provisions of this section governing expedited review of permit applications, the chief may refuse to accept requests for expedited review if, in the chief's judgment, the acceptance of the requests would prevent the issuance, within twenty-one days of their filing, of permits for which applications are pending.
(E) A well shall be drilled and operated in accordance with the plans, sworn statements, and other information submitted in the approved application.
(F) The chief shall issue an order denying a permit if the chief finds that there is a substantial risk that the operation will result in violations of this chapter or rules adopted under it that will present an imminent danger to public health or safety or damage to the environment, provided that where the chief finds that terms or conditions to the permit can reasonably be expected to prevent such violations, the chief shall issue the permit subject to those terms or conditions, including, if applicable, terms and conditions regarding subjects identified in rules adopted under section 1509.03 of the Revised Code. The issuance of a permit shall not be considered an order of the chief.
(G) Each application for a permit required by section 1509.05 of the Revised Code, except an application to plug back an existing well that is required by that section and an application for a well drilled or reopened for purposes of section 1509.22 of the Revised Code, also shall be accompanied by a nonrefundable fee as follows:
(1) Five hundred dollars for a permit to conduct activities in a township with a population of fewer than ten thousand;
(2) Seven hundred fifty dollars for a permit to conduct activities in a township with a population of ten thousand or more, but fewer than fifteen thousand;
(3) One thousand dollars for a permit to conduct activities in either of the following:
(a) A township with a population of fifteen thousand or more;
(b) A municipal corporation regardless of population.
(4) If the application is for a permit that requires mandatory pooling, an additional five thousand dollars.
For purposes of calculating fee amounts, populations shall be determined using the most recent federal decennial census.
Each application for the revision or reissuance of a permit shall be accompanied by a nonrefundable fee of two hundred fifty dollars.
(H) Prior to the issuance of a permit to drill a proposed well that is to be located in an urbanized area, the division shall conduct a site review to identify and evaluate any site-specific terms and conditions that may be attached to the permit. At the site review, a representative of the division shall consider fencing, screening, and landscaping requirements, if any, for similar structures in the community in which the well is proposed to be located. The terms and conditions that are attached to the permit shall include the establishment of fencing, screening, and landscaping requirements for the surface facilities of the proposed well, including a tank battery of the well.
(I) A permit shall be issued by the chief in accordance with this chapter. A permit issued under this section for a well that is or is to be located in an urbanized area shall be valid for twelve months, and all other permits issued under this section shall be valid for twenty-four months.
(J) A permittee or a permittee's authorized representative shall notify an inspector from the division at least twenty-four hours, or another time period agreed to by the chief's authorized representative, prior to the commencement of drilling, reopening, converting, well stimulation, or plugback operations.
Sec. 1509.074. (A) On and after the effective date of the rules adopted under division (B) of this section, the owner of a well that has been issued a permit under section 1509.06 of the Revised Code shall recycle or treat wastewater, including brine and other waste substances, that results from, is obtained from, or is produced in connection with oil or gas drilling, exploration, or production in accordance with the plan submitted under division (A)(12) of that section.
(B) The chief of the division of oil and gas resources management shall adopt rules in accordance with Chapter 119. of the Revised Code establishing all of the following:
(1) Requirements governing the content and implementation of the plan that must be submitted under division (A)(12) of section 1509.06 of the Revised Code;
(2) Procedures and requirements in accordance with which the chief may authorize an owner to dispose of wastewater, including brine and other waste substances, that results from, is obtained from, or is produced in connection with oil or gas drilling, exploration, or production in accordance with section 1509.22 of the Revised Code if the owner demonstrates to the satisfaction of the chief that such wastewater cannot be recycled or otherwise treated;
(3) Any other requirement that the chief determines is necessary to administer this section and division (A)(12) of section 1509.06 of the Revised Code.
Sec. 1509.22.  (A) Except when acting in accordance with section 1509.226 of the Revised Code, no person shall place or cause to be placed brine, crude oil, natural gas, or other fluids associated with the exploration or development of oil and gas resources in surface or ground water or in or on the land in such quantities or in such manner as actually causes or could reasonably be anticipated to cause either of the following:
(1) Water used for consumption by humans or domestic animals to exceed the standards of the Safe Drinking Water Act;
(2) Damage or injury to public health or safety or the environment.
(B) No person shall store or dispose of brine in violation of a plan approved under division (A) of section 1509.222 or section 1509.226 of the Revised Code, in violation of a resolution submitted under section 1509.226 of the Revised Code, or in violation of rules or orders applicable to those plans or resolutions.
(C) The chief of the division of oil and gas resources management shall adopt rules and issue orders regarding storage and disposal of brine and other waste substances; however, the storage and disposal of brine and other waste substances and the chief's rules relating to storage and disposal are subject to all of the following standards:
(1) Brine from any well except an exempt Mississippian well shall be disposed of only by injection into an underground formation, including annular disposal if approved by rule of the chief, which injection shall be subject to division (D) of this section; by surface application in accordance with section 1509.226 of the Revised Code; in association with a method of enhanced recovery as provided in section 1509.21 of the Revised Code; or by other methods approved by the chief for testing or implementing a new technology or method of disposal. Brine from exempt Mississippian wells shall not be discharged directly into the waters of the state.
(2) Muds, cuttings, and other waste substances shall not be disposed of in violation of any rule.
(3) Pits or steel tanks shall be used as authorized by the chief for containing brine and other waste substances resulting from, obtained from, or produced in connection with drilling, well stimulation, reworking, reconditioning, plugging back, or plugging operations. The pits and steel tanks shall be constructed and maintained to prevent the escape of brine and other waste substances.
(4) A dike or pit may be used for spill prevention and control. A dike or pit so used shall be constructed and maintained to prevent the escape of brine and crude oil, and the reservoir within such a dike or pit shall be kept reasonably free of brine, crude oil, and other waste substances.
(5) Earthen impoundments constructed pursuant to the division's specifications may be used for the temporary storage of fluids used in the stimulation of a well.
(6) No pit, earthen impoundment, or dike shall be used for the temporary storage of brine or other substances except in accordance with divisions (C)(3) to (5) of this section.
(7) No pit or dike shall be used for the ultimate disposal of brine or other liquid waste substances.
(D)(1) No person, without first having obtained a permit from the chief, shall inject brine or other waste substances resulting from, obtained from, or produced in connection with oil or gas drilling, exploration, or production into an underground formation unless a rule of the chief expressly authorizes the injection without a permit. The permit shall be in addition to any permit required by section 1509.05 of the Revised Code, and the permit application shall be accompanied by a permit fee of one thousand dollars, the information that is required in section 1509.228 of the Revised Code, and the waste analysis plan that is required by division (D)(2) of this section. The
(2)(a) A person that submits an application for a permit to inject brine or other waste substances resulting from, obtained from, or produced in connection with oil or gas drilling, exploration, or production into an underground formation shall prepare and submit to the chief a waste analysis plan. The plan shall consist of a written document that will be used as the basis for analyzing the contents in each container of brine or other waste substances that will be injected in the well. The waste analysis plan shall include all of the following:
(i) A detailed description of the physical and chemical tests that will be used to identify the contents in each container of brine or other waste substances;
(ii) An explanation of the reasons for the selection of the physical and chemical tests described pursuant to division (D)(2)(a)(i) of this section;
(iii) A detailed description of the methods that will be used to obtain a sample of the contents in each container of brine or waste substances;
(iv) A detailed description of the quality assurance procedures that will be used in the analysis of the contents in each container of brine or other waste substances that will be injected in the well;
(v) Any other information that the chief determines is necessary.
(b) The chief shall review a waste analysis plan submitted under division (D)(2)(a) of this section and approve or disapprove the plan. The chief shall notify the applicant of the chief's approval or disapproval of the plan. If the chief disapproves the waste analysis plan, the applicant may correct any deficiencies and resubmit the plan for approval.
(c) A person that obtains a permit under this section shall revise the permittee's waste analysis plan as needed and shall submit the revised plan to the chief for approval in the same manner as the original plan. If the chief disapproves the revised plan, the permittee may correct any deficiencies and resubmit the revised plan for approval. For the purpose of division (D)(2)(d) of this section, the permittee may continue to use the waste analysis plan that was approved immediately prior to the submission of a revised plan until the revised plan is approved. The permittee of an injection well may analyze the contents in each container of brine or other waste substances in accordance with the revised plan.
(d) A permittee shall analyze the contents in each container of brine or other waste substances in accordance with an approved waste analysis plan prior to injecting the brine or other waste substances into an underground formation.
(3)(a) After the chief determines that an application for a permit is complete, the chief shall post on the division of oil and gas resources management's web site a notification that contains information regarding the application that is the same as the information that is required to be contained in the weekly circular of the division in division (B) of section 1509.06 of the Revised Code. In addition, the chief shall establish the time, date, and location of the public hearing that is required by division (D)(3)(b) of this section and provide to the applicant information regarding the public hearing, the permit application number, and the location where a copy of the application may be inspected.
(b) The chief shall hold a public hearing in the township or municipal corporation, as applicable, where the proposed injection well is to be located on the application for a permit submitted under this section. The meeting shall be held not later than sixty days after the applicant's fourth publication in a newspaper that is required by division (D)(3)(c) of this section.
(c) Beginning in the week following the week of receipt of the information provided by the chief under division (D)(3)(a) of this section, the applicant shall publish a notice, at least once a week for four consecutive weeks, in a newspaper of general circulation in the county in which the proposed injection well is to be located and, if available, in any local weekly news publication that serves the township or municipal corporation in which the proposed well is to be located. The font for the notice shall be of a reasonable size. In addition, the notice shall contain all of the following information:
(i) The name of the applicant;
(ii) A statement that the applicant intends to drill an injection well;
(iii) A description of the location at which the proposed well will be drilled;
(iv) The permit application number;
(v) The time, date, and location of the public hearing that the chief will hold under division (D)(3)(b) of this section;
(vi) The location where a copy of the permit application may be inspected.
(d) The chief shall provide a notice containing all of the information required by division (D)(3)(c) of this section to all of the following, as applicable:
(i) The board of county commissioners of the county in which the proposed injection well is to be located;
(ii) The legislative authority of the municipal corporation or the board of township trustees of the township in which the proposed well is to be located;
(iii) Each private water company that has a well or a reservoir that is located within a two-mile radius of the proposed location of the well;
(iv) The board of directors of each conservancy district established under Chapter 6101. of the Revised Code with jurisdiction in the area in which the well is proposed to be located, if applicable;
(v) Each planning commission with jurisdiction in the area in which the well is proposed to be located;
(vi) Each state and federal legislator in whose legislative district the well is proposed to be located.
An individual or entity that received a notice under division (D)(3)(d) of this section may submit to the chief written comments concerning the application with respect to the effects of the operation of the proposed injection well on the environment that are within the individual's or entity's area of responsibility. The written comments shall be submitted to the chief not later than thirty days after the individual's or entity's receipt of the notice. If the chief receives such written comments concerning an application, the chief immediately shall transmit a copy of the comments to the applicant and post a copy of them on the division's web site.
(e) Any person may submit a written comment or objection to the chief with respect to an application submitted under division (D)(1) of this section. A comment or objection shall be submitted not later than ninety days after the date of the first publication of the notice by the applicant under division (D)(3)(c) of this section unless the chief grants an extension.
(4)(a) A person that submits an application for a permit under division (D)(1) of this section shall conduct reflection seismology at the location of the proposed injection well in order to identify geologic features under the surface location of the proposed injection well. The person shall submit the results of the reflection seismology to the chief.
(b) As used in division (D)(4)(a) of this section, "geologic features" means lateral stratigraphic changes, faults, fractures, or other structural irregularities.
(5) The board of township trustees of the township or the legislative authority of the municipal corporation, as applicable, in which an injection well is proposed to be located for which an application was submitted under division (D)(1) of this section may adopt a resolution or enact an ordinance, as applicable, objecting to the issuance of a permit for the well. The board or the legislative authority may submit the resolution or ordinance to the chief.
(6) The chief shall not issue a permit for an application submitted under division (D)(1) of this section if any of the following applies:
(a) The applicant has not submitted a waste analysis plan under division (D)(2)(a) of this section.
(b) The chief has not approved the applicant's waste analysis plan under division (D)(2)(b) of this section.
(c) The applicant has not conducted and submitted the results of reflection seismology at the location of the proposed injection well under division (D)(4) of this section.
(d) The chief has received within thirty days after the public hearing required by division (D)(3)(b) of this section a resolution or an ordinance under division (D)(5) of this section objecting to the issuance of a permit for the well from the board of township trustees of the township or the legislative authority of the municipal corporation, as applicable, in which the proposed injection well is to be located.
(7) To implement the goals of the Safe Drinking Water Act, the chief shall not issue a permit for the injection of brine or other waste substances resulting from, obtained from, or produced in connection with oil or gas drilling, exploration, or production unless the chief concludes that the applicant has demonstrated that the injection will not result in the presence of any contaminant in ground water that supplies or can reasonably be expected to supply any public water system, such that the presence of the contaminant may result in the system's not complying with any national primary drinking water regulation or may otherwise adversely affect the health of persons.
(E) The chief shall adopt rules in accordance with Chapter 119. of the Revised Code regarding the injection into wells of brine and other waste substances resulting from, obtained from, or produced in connection with oil or gas drilling, exploration, or production. The rules shall require a person who has been issued a permit under division (D) of this section for such a well to add a stable benign chemical tracer into the well in an amount and at a frequency that are determined by the chief for the purposes of determining if brine and other waste substances that are injected into the well have migrated and if impacts to ground water have occurred from the operation of the well. The rules may authorize tests to evaluate whether fluids or carbon dioxide may be injected in a reservoir and to determine the maximum allowable injection pressure, which shall be conducted in accordance with methods prescribed in the rules or in accordance with conditions of the permit. In addition, the rules shall include provisions regarding applications all of the following:
(1) Applications for and issuance of the permits required by this division (D) of this section; entry
(2) Entry to conduct inspections and to examine and copy records to ascertain compliance with this division section and rules, orders, and terms and conditions of permits adopted or issued under it; the
(3) The provision and maintenance of information through monitoring, recordkeeping, and reporting; and other
(4) Other provisions in furtherance of the goals of this section and the Safe Drinking Water Act. To implement the goals of the Safe Drinking Water Act, the chief shall not issue a permit for the injection of brine or other waste substances resulting from, obtained from, or produced in connection with oil or gas drilling, exploration, or production unless the chief concludes that the applicant has demonstrated that the injection will not result in the presence of any contaminant in ground water that supplies or can reasonably be expected to supply any public water system, such that the presence of the contaminant may result in the system's not complying with any national primary drinking water regulation or may otherwise adversely affect the health of persons. This division
(F) Divisions (D) and (E) of this section and rules, orders, and terms and conditions of permits adopted or issued under it those divisions shall be construed to be no more stringent than required for compliance with the Safe Drinking Water Act unless essential to ensure that underground sources of drinking water will not be endangered.
(E)(G) The owner holding a permit, or an assignee or transferee who has assumed the obligations and liabilities imposed by this chapter and any rules adopted or orders issued under it pursuant to section 1509.31 of the Revised Code, and the operator of a well shall be liable for a violation of this section or any rules adopted or orders or terms or conditions of a permit issued under it.
(F)(H) An owner shall replace the water supply of the holder of an interest in real property who obtains all or part of the holder's supply of water for domestic, agricultural, industrial, or other legitimate use from an underground or surface source where the supply has been substantially disrupted by contamination, diminution, or interruption proximately resulting from the owner's oil or gas operation, or the owner may elect to compensate the holder of the interest in real property for the difference between the fair market value of the interest before the damage occurred to the water supply and the fair market value after the damage occurred if the cost of replacing the water supply exceeds this difference in fair market values. However, during the pendency of any order issued under this division, the owner shall obtain for the holder or shall reimburse the holder for the reasonable cost of obtaining a water supply from the time of the contamination, diminution, or interruption by the operation until the owner has complied with an order of the chief for compliance with this division or such an order has been revoked or otherwise becomes not effective. If the owner elects to pay the difference in fair market values, but the owner and the holder have not agreed on the difference within thirty days after the chief issues an order for compliance with this division, within ten days after the expiration of that thirty-day period, the owner and the chief each shall appoint an appraiser to determine the difference in fair market values, except that the holder of the interest in real property may elect to appoint and compensate the holder's own appraiser, in which case the chief shall not appoint an appraiser. The two appraisers appointed shall appoint a third appraiser, and within thirty days after the appointment of the third appraiser, the three appraisers shall hold a hearing to determine the difference in fair market values. Within ten days after the hearing, the appraisers shall make their determination by majority vote and issue their final determination of the difference in fair market values. The chief shall accept a determination of the difference in fair market values made by agreement of the owner and holder or by appraisers under this division and shall make and dissolve orders accordingly. This division does not affect in any way the right of any person to enforce or protect, under applicable law, the person's interest in water resources affected by an oil or gas operation.
(G)(I) In any action brought by the state for a violation of division (A) of this section involving any well at which annular disposal is used, there shall be a rebuttable presumption available to the state that the annular disposal caused the violation if the well is located within a one-quarter-mile radius of the site of the violation.
(J) An owner who has been issued a permit for a well under division (D) of this section and the operator of the well shall allow the board of township trustees of the township or the legislative authority of the municipal corporation, as applicable, in which the injection well is located to remove a sample for analysis from any container of brine or other waste substances that is delivered to the well prior to injecting the brine or other waste substances into the well.
Sec. 1509.221.  (A) No person, without first having obtained a permit from the chief of the division of oil and gas resources management, shall drill a well or inject a substance into a well for the exploration for or extraction of minerals or energy, other than oil or natural gas, including, but not limited to, the mining of sulfur by the Frasch process, the solution mining of minerals, the in situ combustion of fossil fuel, or the recovery of geothermal energy to produce electric power, unless a rule of the chief expressly authorizes the activity without a permit. The permit shall be in addition to any permit required by section 1509.05 of the Revised Code. The chief shall adopt rules in accordance with Chapter 119. of the Revised Code governing the issuance of permits under this section. The rules shall include provisions regarding the matters the applicant for a permit shall demonstrate to establish eligibility for a permit; the form and content of applications for permits; the terms and conditions of permits; entry to conduct inspections and to examine and copy records to ascertain compliance with this section and rules, orders, and terms and conditions of permits adopted or issued thereunder; provision and maintenance of information through monitoring, recordkeeping, and reporting; and other provisions in furtherance of the goals of this section and the Safe Drinking Water Act. To implement the goals of the Safe Drinking Water Act, the chief shall not issue a permit under this section, unless the chief concludes that the applicant has demonstrated that the drilling, injection of a substance, and extraction of minerals or energy will not result in the presence of any contaminant in underground water that supplies or can reasonably be expected to supply any public water system, such that the presence of the contaminant may result in the system's not complying with any national primary drinking water regulation or may otherwise adversely affect the health of persons. The chief may issue, without a prior adjudication hearing, orders requiring compliance with this section and rules, orders, and terms and conditions of permits adopted or issued thereunder. This section and rules, orders, and terms and conditions of permits adopted or issued thereunder shall be construed to be no more stringent than required for compliance with the Safe Drinking Water Act, unless essential to ensure that underground sources of drinking water will not be endangered.
(B)(1) There is levied on the owner of an injection well who has been issued a permit under division (D) of section 1509.22 of the Revised Code the following fees:
(a) Five cents per barrel of each substance that is delivered to a well to be injected in the well when the substance is produced within the division of oil and gas resources management regulatory district in which the well is located or within an adjoining oil and gas resources management regulatory district;
(b) Twenty cents per barrel of each substance that is delivered to a well to be injected in the well when the substance is not produced within the division of oil and gas resources management regulatory district in which the well is located or within an adjoining oil and gas resources management regulatory district.
(2) The maximum number of barrels of substance per injection well in a calendar year on which a fee may be levied under division (B) of this section is five hundred thousand. If in a calendar year the owner of an injection well receives more than five hundred thousand barrels of substance to be injected in the owner's well and if the owner receives at least one substance that is produced within the division's regulatory district in which the well is located or within an adjoining regulatory district and at least one substance that is not produced within the division's regulatory district in which the well is located or within an adjoining regulatory district, the fee shall be calculated first on all of the barrels of substance that are not produced within the division's regulatory district in which the well is located or within an adjoining district at the rate established in division (B)(2) of this section. The fee then shall be calculated on the barrels of substance that are produced within the division's regulatory district in which the well is located or within an adjoining district at the rate established in division (B)(1) of this section until the maximum number of barrels established in division (B)(2) of this section has been attained There is levied on the owner of an injection well who has been issued a permit under division (D) of section 1509.22 of the Revised Code an additional fee of five cents per barrel of each substance that is delivered to the well to be injected in the well.
(3) The owner of an injection well who is issued a permit under division (D) of section 1509.22 of the Revised Code shall collect the fee fees levied by division (B) of this section on behalf of the division of oil and gas resources management and forward the fee fees to the division. The chief shall transmit all money received under division (B)(1) of this section to the treasurer of state who shall deposit the money in the state treasury to the credit of the oil and gas well fund created in section 1509.02 of the Revised Code. The chief shall transmit all money received under division (B)(2) of this section to the treasurer of state who shall deposit the money in the state treasury to the credit of the injection well ground water monitoring fund created in section 1509.227 of the Revised Code. The owner of an injection well who collects the fee fees levied by this division (B) of this section may retain up to three per cent of the amount that is collected.
(4) The chief shall adopt rules in accordance with Chapter 119. of the Revised Code establishing requirements and procedures for collection of the fee fees levied by division (B) of this section.
(C) In an action under section 1509.04 or 1509.33 of the Revised Code to enforce this section, the court shall grant preliminary and permanent injunctive relief and impose a civil penalty upon the showing that the person against whom the action is brought has violated, is violating, or will violate this section or rules, orders, or terms or conditions of permits adopted or issued thereunder. The court shall not require, prior to granting such preliminary and permanent injunctive relief or imposing a civil penalty, proof that the violation was, is, or will be the result of intentional conduct or negligence. In any such action, any person may intervene as a plaintiff upon the demonstration that the person has an interest that is or may be adversely affected by the activity for which injunctive relief or a civil penalty is sought.
Sec. 1509.227. (A) There is hereby created in the state treasury the injection well ground water monitoring fund consisting of money credited to it under section 1509.221 of the Revised Code. The chief of the division of oil and gas resources management shall administer the fund and shall use money credited to it solely to conduct ground water monitoring in accordance with rules adopted under division (B) of this section.
(B) The chief shall adopt rules in accordance with Chapter 119. of the Revised Code establishing requirements for the installation of ground water monitoring wells and the monitoring of ground water quality and quantity prior to the commencement of drilling of a well for which a permit is issued under division (D) of section 1509.22 of the Revised Code and during the injection of brine or other waste substances into such a well. The rules shall require that ground water monitoring be capable of determining impacts resulting from the operation of the injection well. In addition, the rules shall establish requirements governing ground water assessment and corrective actions for impacts to ground water. Further, the rules shall require that the owner of an injection well submit to the chief a monitoring report that has been prepared by a qualified ground water scientist and that includes all of the following:
(1) A determination of any impacts to ground water from the migration of contaminants from the injection well;
(2) A list of the contaminants from the injection well that may be causing contamination of ground water;
(3) Recommendations for actions, if any, that should be taken to investigate or remediate the source of any ground water contamination.
Sec. 1509.228. (A) An application for a permit for an injection well that is submitted under section 1509.22 of the Revised Code shall include all of the following:
(1) A listing of all injection wells that the owner of the proposed new injection well or a key employee of the owner has operated or is operating in this state;
(2) A listing of the injection wells that the owner or a key employee of the owner has operated or is operating elsewhere in the United States together with a listing of the injection wells that the owner or a key employee of the owner has operated or is operating outside the United States;
(3) A listing of all administrative enforcement orders issued to the owner or a key employee of the owner, all civil actions in which the owner or a key employee of the owner was determined by the trier of fact to be liable in damages or was the subject of injunctive relief or another type of civil relief, and all criminal actions in which the owner or a key employee of the owner pleaded guilty or was convicted, during the ten years immediately preceding the submission of the application, in connection with any violation by the owner or a key employee of the owner of an applicable state or federal law pertaining to oil and gas operations or environmental protection or the laws of another country pertaining to oil and gas operations or environmental protection;
(4) A listing of all administrative enforcement orders, civil actions, or criminal actions pending at the time of the submission of the application for a permit for an injection well in connection with a violation of any applicable state or federal law pertaining to oil and gas operations or environmental protection that was alleged to have been committed by the owner or a key employee of the owner.
The lists of injection wells operated by the owner or a key employee of the owner within or outside this state or outside the United States shall include all such injection wells operated by the owner or a key employee of the owner during the ten-year period immediately preceding the submission of the application.
(B) If the applicant for a permit for an injection well has been involved in any prior activity involving the operation of an injection well, the chief of the division of oil and gas resources management may deny the application if the chief finds from the application, the information submitted under divisions (A)(1) to (4) of this section, pertinent information submitted to the chief, and other pertinent information obtained by the chief at the chief's discretion that the applicant or any other person listed on the application, in the operation of injection wells, has a history of substantial noncompliance with state and federal laws pertaining to oil and gas operations or environmental protection or the laws of another country pertaining to oil and gas operations or environmental protection that indicates that the applicant lacks sufficient reliability, expertise, and competence to operate the proposed new injection well in substantial compliance with this chapter and rules adopted under it.
(C) An owner that has submitted the information required under division (A) of this section annually shall submit to the chief all information required to be submitted under division (A) of this section that has changed or been added in the immediately preceding year. If, during that period, there have been no changes in or additions to that information, the owner shall submit to the chief an affidavit stating that there have been no changes in or additions to that information during that time period. The chief may revoke the permit for the injection well if the updated information indicates any of the reasons specified in division (B) of this section for the denial of an application for a permit for an injection well.
(D) When the owner of an injection well employs a new key employee, the owner shall submit or shall require the new key employee to submit to the chief information regarding the new key employee that is required to be submitted under division (A) of this section by an applicant for a permit for an injection well. The chief may revoke the permit for the injection well if the information regarding the new key employee indicates any of the reasons specified in division (B) of this section for the denial of an application for a permit for an injection well.
(E) As used in this section:
(1) "Injection well" means a well for which an application for a permit has been submitted under division (D) of section 1509.22 of the Revised Code.
(2) "Key employee" means an individual employed by an applicant for a permit for an injection well in a supervisory capacity or who is empowered to make discretionary decisions with respect to the injection well operations of the applicant, but does not include an employee who is exclusively engaged in the physical or mechanical transportation or disposal of brine or other waste substances. If the applicant has entered into a contract with another person to operate the injection well that is the subject of the application, "key employee" includes an employee of the contractor who acts in a supervisory capacity or is empowered to make discretionary decisions with respect to the operation of the injection well.
Sec. 1509.31.  (A) Whenever the entire interest of an oil and gas lease is assigned or otherwise transferred, the assignor or transferor shall notify the holders of the royalty interests, and, if a well or wells exist on the lease, the division of oil and gas resources management, of the name and address of the assignee or transferee by certified mail, return receipt requested, not later than thirty days after the date of the assignment or transfer. When notice of any such assignment or transfer is required to be provided to the division, it shall be provided on a form prescribed and provided by the division and verified by both the assignor or transferor and by the assignee or transferee and shall be accompanied by a nonrefundable fee of one hundred dollars for each well. The notice form applicable to assignments or transfers of a well to the owner of the surface estate of the tract on which the well is located shall contain a statement informing the landowner that the well may require periodic servicing to maintain its productivity; that, upon assignment or transfer of the well to the landowner, the landowner becomes responsible for compliance with the requirements of this chapter and rules adopted under it, including, without limitation, the proper disposal of brine obtained from the well, the plugging of the well when it becomes incapable of producing oil or gas, and the restoration of the well site; and that, upon assignment or transfer of the well to the landowner, the landowner becomes responsible for the costs of compliance with the requirements of this chapter and rules adopted under it and the costs for operating and servicing the well.
(B) When the entire interest of a well is proposed to be assigned or otherwise transferred to the landowner for use as an exempt domestic well, the owner who has been issued a permit under this chapter for the well shall submit to the chief of the division of oil and gas resources management an application for the assignment or transfer that contains all documents that the chief requires and a nonrefundable fee of one hundred dollars. The application for such an assignment or transfer shall be prescribed and provided by the chief. The chief may approve the application if the application is accompanied by a release of all of the oil and gas leases that are included in the applicable formation of the drilling unit, the release is in a form such that the well ownership merges with the fee simple interest of the surface tract, and the release is in a form that may be recorded. However, if the owner of the well does not release the oil and gas leases associated with the well that is proposed to be assigned or otherwise transferred or if the fee simple tract that results from the merger of the well ownership with the fee simple interest of the surface tract is less than five acres, the proposed exempt domestic well owner shall post a five thousand dollar bond with the division prior to the assignment or transfer of the well to ensure that the well will be properly plugged. The chief, for good cause, may modify the requirements of this section governing the assignment or transfer of the interests of a well to the landowner. Upon the assignment or transfer of the well, the owner of an exempt domestic well is not subject to the severance tax levied under section 5749.02 of the Revised Code, but is subject to all applicable fees established in this chapter.
(C) The owner holding a permit under section 1509.05 of the Revised Code is responsible for all obligations and liabilities imposed by this chapter and any rules, orders, and terms and conditions of a permit adopted or issued under it, and no assignment or transfer by the owner relieves the owner of the obligations and liabilities until and unless the assignee or transferee files with the division the information described in divisions (A)(1), (2), (3), (4), (5), (10), (11), and (12) (13) of section 1509.06 of the Revised Code; obtains liability insurance coverage required by section 1509.07 of the Revised Code, except when none is required by that section; and executes and files a surety bond, negotiable certificates of deposit or irrevocable letters of credit, or cash, as described in that section. Instead of a bond, but only upon acceptance by the chief, the assignee or transferee may file proof of financial responsibility, described in section 1509.07 of the Revised Code. Section 1509.071 of the Revised Code applies to the surety bond, cash, and negotiable certificates of deposit and irrevocable letters of credit described in this section. Unless the chief approves a modification, each assignee or transferee shall operate in accordance with the plans and information filed by the permit holder pursuant to section 1509.06 of the Revised Code.
(D) If a mortgaged property that is being foreclosed is subject to an oil or gas lease, pipeline agreement, or other instrument related to the production or sale of oil or natural gas and the lease, agreement, or other instrument was recorded subsequent to the mortgage, and if the lease, agreement, or other instrument is not in default, the oil or gas lease, pipeline agreement, or other instrument, as applicable, has priority over all other liens, claims, or encumbrances on the property so that the oil or gas lease, pipeline agreement, or other instrument is not terminated or extinguished upon the foreclosure sale of the mortgaged property. If the owner of the mortgaged property was entitled to oil and gas royalties before the foreclosure sale, the oil or gas royalties shall be paid to the purchaser of the foreclosed property.
Section 2. That existing sections 1509.02, 1509.06, 1509.22, 1509.221, and 1509.31 of the Revised Code are hereby repealed.
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